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Euro Zone Prepares for Greek Exit

Europe is preparing for Greece to leave the euro zone. CNBC is reporting that European Union leaders, advised by senior officials to prepare contingency plans in case Greece decides to drop the single currency, urged the country focus on austerity measures and complete the reforms demanded under its bailout program.

Leaders said they were committed to Greece remaining in the euro zone, but that the country would have to "stick to its side of the bargain."

In its monthly report, Germany's Bundesbank said the situation in Greece was "extremely worrying" and it was jeopardizing any further financial aid by threatening not to implement reforms agreed as part of its two bailouts.

A euro exit would pose "considerable but manageable" challenges for its European partners, which increases pressure on Athens to stick with its painful economic reforms. Greek officials have said that without outside funds, the country will run out of money within two months. It is worth noting that if Greece drops the euro, other member states could be brought down as well.